Financial Daily from THE HINDU group of publications
Thursday, Jul 22, 2004

Cross Currency

Group Sites

Corporate - Mergers & Acquisitions

LG Electronics to buy IL&FS stake in LG Soft India

Ambarish Mukherjee

New Delhi , July 21

KOREAN electronics major LG Electronics is buying out a part of the stake in LG Soft India Private Ltd.

Currently, a 25 per cent stake in the joint venture software development company is held by IL&FS Trust Company Ltd.

Initially, LG plans to acquire a 14 per cent stake in LG Soft while the balance 11 per cent will remain with IL&FS. LG has an option to buy out this portion at a future date.

According to earlier reports, IL&FS' investment in the company was an indirect investment by the American Insurance Group (AIG). AIG set up an information technology sector fund that was managed by IL&FS, and the money transfer happened via IL&FS during 2000 and 2001, sources said.

According to sources, the transaction is being carried out at par. As of now, the joint venture outfit has a paid-up capital of Rs 11,20,42,700 of which around 75 per cent or Rs 8,40,32,000 is held by LG Electronics.

IL&FS Trust Company has 25 per cent holding in the company amounting to Rs 2,80,10,680. LG is to acquire 15,42,800 equity shares of the company of Rs 10 each at par, after which, its holding will go up to 89 per cent. The proposal was cleared by the Government recently.

More Stories on : Mergers & Acquisitions | Software | Consumer Electronics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AP Paper Mills signs loan agreement with IFC

Capacity constraint delays Tata Motors' Marina launch
BHEL unit bags Rs 80-cr Omani order
Kinetic to supply auto parts to other cos
Tatas to expand power systems division
ICAI clarifies on norms for consolidated financial statements
Nagarjuna Fert to consider issue of preference shares
A will in the present with baggage from the past
TCS to sell stake in BPO venture to HDFC
LG Electronics to buy IL&FS stake in LG Soft India
Eagle group to invest Rs 100 cr in new diary making facility
BOC India plans 190-tpd gas plant in Hyderabad
UDV all set to exit joint venture with UB
Ponni Sugars trying new sources of raw material
Kerosene, LPG sale burden — BPCL, IBP may slip into red in Q1

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line